HR Audit

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HR Audit

  1. 1. HR Audit
  2. 2. Strategic Functions Compliance Issues Aspects of HR Audit
  3. 3. What is HR Audit?  It is a Comprehensive Evaluation of Human Resource Development:  Strategies, Systems and Practices  Structures and Competencies  Styles and Culture  And their appropriateness to achieve the short and long term business goals of the organization.
  4. 4. Purpose  To assess the effectiveness of the Human Resources function to ensure regulatory compliance  To look for potentially serious problems  To find areas needing improvement  To document processes for use in merger, reorganization or inspection  To address compliance issues
  5. 5. Benefits  Create an HR business plan  Streamline HR work processes  Monitor compliance with established regulations and procedures  Develop user-friendly HR systems  Identifies the contribution of the personnel departments to the organization  Improves professional image of the personnel department  Encourages greater responsibility and professionalism among members of the personnel department  Clarifies the personnel department’s duties and responsibilities  Finds critical personnel problems
  6. 6. To Evaluate and Improve HR Practices in:  Staffing  Compensation and Benefits  Performance Management  Employee Development  Employee Relations  Safety  Reporting and Recordkeeping
  7. 7. Reasons for HR Audit  For expanding, diversifying and entering into a fast growth phase  For promoting more professionalism and professional management  Bench-marking for improving HRD practices  Growth and diversification  Dissatisfaction with any component  Change of leadership
  8. 8. Role of HR Audit in Business Improvements  HRD audit is cost effective  It can give many insights into a company's affairs.  It could get the top management to think in terms of strategic and long term business plans.  Changes in the styles of top management  Role clarity of HRD Department and the role of line managers in HRD
  9. 9. Role of HR Audit in Business Improvements  Improvements in HRD systems  Increased focus on human resources and human competencies  Better recruitment policies and more professional staff  More planning and more cost effective training  Strengthening accountabilities through appraisal systems and other mechanisms  Streamlining of other management practices  TQM Interventions
  10. 10. Scope  Audit of Corporate Strategy  Corporate Strategy concerns how the organization is going to gain competitive advantage.  Audit of the Human Resource Function  Audit touches on Human Resource Information System, Staffing and Development, and Organization Control and Evaluation.  Audit of Managerial Compliance  Reviews how well managers comply with human resource policies and procedures.  Audit of Employee Satisfaction  To learn how well employee needs are met.
  11. 11. Tasks of Auditors  Review the policies and procedures used to achieve these activities.  Prepare a report commending proper objectives, policies, and procedures.  Develop an action plan to correct errors in each activity.  Follow up the action plan to see if it solved the problems found through the audit.  Identify who is responsible for each activity.  Determine the objectives sought by each activity.
  12. 12. Methodology  Interviews  Individual and group  Top Management  Line Managers  HRD Staff  Workmen and others  Questionnaires  Observation  Analysis of records and secondary data  Workshops  Task forces and internal teams  External Auditors have a significant role  Benchmarking of questionnaire data
  13. 13. THANK YOU!!!

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